I dont actually think the rumour is true to be honest, mostly for Lucasarts licensing reasons.

However, assuming it is, and without wanting to piss on everyones chips here , but a few points.

Firstly Bioware Austin isn't Bioware.

It's an amalgam of MMORPG developers.

They're lucky to even have the name Bioware attached to it

The lead combat designer, for instance.

previous games :

Shadowbane (2003), Ubi Soft Entertainment Software
The Sims: Online (2002), Electronic Arts, Inc.
Meridian 59 (1996), 3DO Company, The

Also KOTOR MMO isn't the KOTOR single player game. There will be no plot twists, because there will be no plot.

And most of all.

Its owned, lock stock and barrel by EA.

EA and MMO simply dont go together.

Ask anyone who played UO.

Or that space sim thing they tried.